Mahmud owns a company, Premium Glassware Private Limited (PGP), in Penang. PGP is manufacturing a wide range of glassware products for the local and international markets. He started the business in 2015 with ten employees. The Human Resource officer, Farah had registered all her employees with the EPF Board. Usually, Farah will deduct the employee’s salary every month and the details of the employee’s contribution will be stated in each employee’s pay slip. In January 2019, Yusuf, one of the PGP employees applied to the EPF Board to withdraw some amount from the EPF account for purchasing a house. The EPF Board then checked and approved the withdrawal of RM30,000. Yusuf nevertheless has changed his mind and handed over the amount withdrawn to his wife, Muna, to run an online business. In 2020 when the country was hit by Covid-19, Ramli, another worker of PGP began to have financial problem. Recently, Ramli would like to withdraw his savings from the EPF account through i-Sinar scheme to cover the family expenses. When Ramli applied to withdraw his EPF, he realised that his savings were not much when compared to the length of his service. He subsequently found out that PGP has not made contribution in 2020. Advise Yusuf and Ramli. Support your answer with the legal authorities in particular, the provisions from the Employees Provident Fund Act 1991 and relevant case.
Mahmud owns a company, Premium Glassware Private Limited (PGP), in Penang. PGP is manufacturing a wide range of glassware products for the local and international markets. He started the business in 2015 with ten employees. The Human Resource officer, Farah had registered all her employees with the EPF Board. Usually, Farah will deduct the employee’s salary every month and the details of the employee’s contribution will be stated in each employee’s pay slip.
In January 2019, Yusuf, one of the PGP employees applied to the EPF Board to withdraw some amount from the EPF account for purchasing a house. The EPF Board then checked and approved the withdrawal of RM30,000. Yusuf nevertheless has changed his mind and handed over the amount withdrawn to his wife, Muna, to run an online business.
In 2020 when the country was hit by Covid-19, Ramli, another worker of PGP began to have financial problem. Recently, Ramli would like to withdraw his savings from the EPF account through i-Sinar scheme to cover the family expenses. When Ramli applied to withdraw his EPF, he realised that his savings were not much when compared to the length of his service. He subsequently found out that PGP has not made contribution in 2020.
Advise Yusuf and Ramli. Support your answer with the legal authorities in particular, the provisions from the Employees Provident Fund Act 1991 and relevant case.
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